Please choose the correct answers! And explain why it is correct. Thanks! (#3, 4, 5,6) 3. In the ...

3. In the Sept, 2016 Amazon issued
nonconvertiable debt at 99. Then on Oct 1.2016, Amazon issued
convertible debt. The october 1, 2016 issuance consisted of 8 year
6%bonds that were issued at 101 and included a conversion feature
allowing the holder each $1000 bond to 1 share of common stock
($.001 par value). The common stock had a market value of $837 on
oct. 1 , 2016. Which of the following is true regarding to the
original entry to convertible debt issued on OCT 1 , 2016? (Choose
all that apply)

A. If amazon is following IFRS the relative fair Value of the
conversion option is recorded as equity account on the debt issue
date.

B. If amzon is following US GAAP the conversion option is valued
at par value as an equity account on the debt issue date.

C. If amazon is following US GAAP the conversion option is not
recorded on the debt issue date.

D. IF amozaon is following US GAAP the bonds payable account
will be valued at the face amount.

E. If Amazon is following US GAAP the difference between the
proceeds raised and the face amount of the debt will be recorded as
a discount.

A. The followi information comes directly fr Verizon's Notes to the Financial Statements Early Debt Redemption and other costs During the fourth redemption of 350 billion we net debt redemption costs afsos billion fn connection with the earb the e entry that Verizon recorded outstandi notes through cash tender offers. which o ng included following? redemption of the debt referenced above all that apply) A decrease in Assets for the cash paid to purchase the debt. b. An increase in Assets for the cash received from early redemption C A decrease in Liabilities equal to the car alue of the debt redeemed d. An increase in OE upon redemption. A decrease in oE upon redemption. The the following information to answer the following 2 questions Statements following information comes directly from Verizon's Notes to the Financial Fair value information: 2014 2015 At December 31 Fair Carrying Fair Carrying value Amount Value Amount short and long-term debt, excluding capital 26,549 112,755 118, 216 109,237 leases 5. If Verizon had chosen to use the FV option for reporting the debt shown above, what would be true at December 31, 2014? (choose all thatapply) The Fv adjustment account would have a $13,794 credit balance. b. The Fv adjustment account would have a $126d 49 credit balance. c. The Fv adjustment account would have a $13,794 debit balance. $112,755 and the Fair value of d. The balance sheet would recognize both the carrying Amount of $126,549 impacted by the changes in Fair value. e. Any related discount or premium accounts would not be FV its debt and if there was no new debt issu 6. If Verizon had chosen to use the option for reporting all of or retired in 2015, which of the following statements would be true for the 2015 financial statements? (choose the single best answer) its debt of $8,9 In 2015 Verizon would have recorded an unrealized holding loss on g. In 2015 Verizon would have recorded an unrealized holding loss on its debt of s4815 In 2015 Verizon would have recorded an unrealized holding gain on its debt of $8,979 In 2015 Verizon would have recorded an unrealized holding gain on its debt of $4,815 1 j. There is not enough information to answer this question

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